13th Feb 2020 10:32
(Alliance News) - Gem Diamonds Ltd said Thursday its revenue increased in the fourth quarter of 2019, as larger high-quality diamonds prices started to improve.
In the trading update for the fourth quarter ending December 31, the miner said its revenue rose 41% to USD51.3 million from USD36.3 million in the third quarter.
The company said it sold 29,945 carats during the period, a 17% increase from 25,631 carats sold in the third quarter. It also sold seven diamonds for more than USD1.0 million each, generating revenue of USD15.6 million during the period.
"Following pressure on the prices for the larger high-quality diamonds seen during 2019, signs of improvement were noted in December 2019 and this has continued into 2020," the company noted.
The company also said the mining lease for Letseng mine in Lesotho was renewed for a further 10 years, effective from October 3, with an exclusive right granted to renew for a further period of 10 years thereafter.
Clifford Elphick, chief executive officer, said: "Carats sold are up 17% on the prior quarter. There was an increase in volumes treated for the year and a significant reduction in the waste profile."
"This, together with the Business Transformation programme delivering its targeted gains and continued emphasis on cost controls, positions the company well for the anticipated upturn in the market which appears to have begun," Elphick said.
Gem Diamonds shares were trading 4.9% higher in London at 68.80 pence each on Thursday.
By Loreta Juodagalvyte; [email protected]
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